Dollar poised for biggest weekly gain in 16 years

From Reuters: The dollar hovered near a one-year peak against a basket of major currencies on Friday as banks and financial institutions have scrambled to buy the U.S. currency on the open market after being locked out of frozen money markets.

The dollar extended gains versus the euro scored the previous day after European Central Bank President Jean-Claude Trichet said inflation risks have eased, bolstering expectations the ECB will follow other major central banks in cutting rates. So far on the week, the dollar has soared 4.2 percent against a basket of six major currencies — poised for its biggest weekly rise in 16 years….. Full Article: Source